Australia’s central bank has reduced its benchmark interest rate by a quarter percentage point for a third time this year to 3.6%, with inflation tamed and economic growth stalling.

The Reserve Bank of Australia delivered its third interest rate cut since the start of the year, responding to evidence that inflation has cooled and new forecasts showing that it is likely to remain contained.

Australia's central bank on Tuesday cut its main cash rate by a quarter point to a two-year low of 3.60%, citing a slowdown in inflation and a looser labour market, though it was cautious on the prospect of further easing.